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Why is US postal a sponsor?(8 posts)

Why is US postal a sponsor?snowman3
Jul 20, 2002 9:28 PM
OK, so here's another stupid question. I don't know much about road racing and I don't understand why the United States Post Office sponsors an international bike racing team. I can't recall the exact #s, but I thought they lost ~1 Billion dollars recently and raised the price of stamps? Cycling isn't a mainstream sport in the US. The US post office specializes in delivering mail inside the continental US. So why the heck is USPS advertising in a foreign country? Is this the best use of USPS advertising $$?

Didn't Motorola used to sponsor a lot of racing? I can understand that, since they have a global presence. What's the benefit of telling Europeans about USPS?
My understanding...Ron B
Jul 20, 2002 9:42 PM
My understanding is this, from my limited knowledge and understanding.

They sponser the USPS cycling team for advertising and name recognition in europe. They have to compete with other mail delivery systems there for business.

Mail delivery is a global business and USPS has to compete globaly just like every other big business. In europe cycling is just one of the better ways to advertise.

Also realize that USPS is a private agency that is government subsidized (or something like that). They are also not all that bad when compared to other agencies out there. How much money do the airlines get from the government (15+ billion this year with extenuating circumstances)? Amtrak has been getting a billion dollars + every year for quite some time to stay in business. How many business get tax breaks that total a good billion a year just so they can be profitable and stick around?

It's just the way it works.
I'll take a crack at this:LAIrish
Jul 21, 2002 9:01 AM
Yes, the USPS's primary role is the delivery of first class mail in the U.S. But it loses billions of dollars every year in so doing. (We would have to pay considerably more than 37 cents a piece for first class mail to pay for itself.)

The losses from first class delivery have to be made up in other ways, bulk mail for advertisers, package delivery, overnight and express mail for business. These "secondary" lines are where the USPS can actually make money. And, they are worldwide businesses in which the USPS must compete with companies like FedEx, UPS, and DHL.

The Tour de France is the third most watched sporting event in the world (after the Super Bowl and the Olympics). The USPS gets enormous exposure from Lance's success in markets (Europe, S. Amer.) where it is not nearly as well known as here.

Moreover, although cycling is not a mainstream sport in the U.S., Lance's exploits are well covered by the American media. Thus, the USPS gets considerable exposure state side, as well as in foreign markets.

Finally, note that the current sponsorship package guarantees that Lance will be wearing USPS colors if he is riding for an unprecedented sixth consecutive Tour victory. The worldwide media exposure for that quest would be (will be?) absolutely phenomenal.
Surely, you meant to say 'World Cup', not 'Super Bowl' ...nmseyboro
Jul 21, 2002 1:01 PM
Thank you, I stand corrected (nfm)LAIrish
Jul 21, 2002 5:26 PM
re: Why is US postal a sponsor?hatchetman
Jul 21, 2002 3:09 PM
There is a pretty good editorial about the USPS sponsorship at the Bicycling magazine website. Assuming it's correct, it's not a bad deal at all for the Postal Service. Besides, while people complain about the cost of stamps, we still pay less than many people around the world do for postage.

http://www.bicycling.com/cda/article/0,1596,2141-144-101,00.html
re: Why is US postal a sponsor?snowman3
Jul 21, 2002 3:10 PM
Thanks for the info! I wasn't trying to slamm the Post Office or anything. I realize they are a private company with subsidies and I'm amazed at what they provide for $.37. I just never realized their global presence. I can totally see their motivation if they are global.

Lets all cross our fingers about Lance continuing to win for years to come.
80 Million worth of exposureGK
Jul 21, 2002 6:55 PM
I once read story -- maybe it was in SI or Velo News -- where they calculated the value of the exposure USPS gets for the sponsorship as in excess of $80 million.

I know I've posted this before, but people keep asking the question.

GK